Young home buyers are particular about housing wants

Monica DiTrapani had pretty clear idea about what she wanted in a first house, and luckily, her husband, Joe, was for the most part on the same page.

The recently-married couple, both 26 years old, had lofty goals.

They wanted a house that could someday accommodate children. They wanted a home that didn’t require too may repairs. The couple wanted a modern layout. And while Monica was hoping for spacious yard, Joe was excited about the prospect of a finished basement that could be converted to an appropriate man cave.

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“We were looking for a house that we could grow into instead of a small house,” said Monica DiTrapani. “And a house that required a lot of work was out of the question because we just don’t have the time to make big repairs. And of course we were mindful of the price because it is a first house.”

The DiTrapanis are indicative of many millennials – they both have busy careers; Monica DiTrapani organizes English-language courses for expatriates and Joe DiTrapani is a plumber and partner in a family plumping firm.

Millennials – those young people ages 13 to 33 – are about 90 million strong in the United States. As this generation of home buyers enters the housing market, often belatedly because of the recession, low employment levels and student loan debt, Realtors are finding out that pinning down their tastes and needs has been more difficult than expected.

“Young people’s expectations are all over the place,” said Rob Scalici, a broker from Re/Max Metropolitan in Utica.

“A few years ago, they used to go for a first house based on affordability, but if they’re secure in their employment, they’re looking at $250,000 to $280,000 homes,” he said. “They’re not necessarily going for a starter house in Eastpointe. But there are others that are looking for $95,000 home, and they have good jobs.

“If they are interested in hipness, they might go to Royal Oak or Ferndale, but if they’re interested in lower taxes, they’re coming to Macomb County,” Scalici added.

March sales flat

Total home sales in March 2013 essentially remained flat over 2012, with 951 homes changing hands this year versus 948 last year, according to Farmington Hills-based REALCOMP, which tracks real estate sales data in Southeast Michigan.

Foreclosure sales trended down from 447 in March 2012 to 319 a year later – which represents a decline of 18.6 percent.

Median sales prices increased by 18.7 percent this year to $83,000 from $69,950 in March 2012, while available listings fell 22.9 percent from 3,257 to 2,512 during the same period.

Karen Kage, the president of REALCOMP, said that although the reports don’t break down buyers by age, the same factors are driving sales among young people and their parents: Record-low interest rates and pent-up demand.

“During the past several months, we’ve seen the market convert from a buyer’s market to a seller’s market,” she said. “Inventory levels are at record lows, which means that there are often several bids on a home.”

Young people who are buying a first home often enjoy a few advantages that their older counterparts don’t have, however. They’re not hamstrung by underwater mortgages on other properties, damaged credit or having to sell another home. But, there are also some challenges, said Scalici.

“Lending can be an issue because they’re not typically putting down 20 percent, so we have to factor that in,” he said. “Right now, a majority of first-time buyers are doing FHA (Federal Housing Administration) loans.”

FHA loans generally have more lenient requirements; down payments can be as little as 3.5 percent of a home’s asking price.

Jeanette Schneider, the regional vice president of Re/Max of Southeastern Michigan said young people need to be prepared for what can be a long, frustrating process.

“Young people tend to want turnkey conditions; they don’t want to have to deal with home improvement projects right away,” she said.

“Those homes are in demand right now.”

Vanessa Soave, 29, recently moved into a 1,200-square-foot, two-bedroom and two bathroom condominium in Shelby Township with her 2-year-old daughter, Carlina. She found out first-hand how intense the market is for maintenance-free homes.

“I started looking for a home in February last year, and I finally moved in December,” she said. “I was getting outbid by people making cash offers that were more than the asking price.”

A long search

After looking at about 100 homes online and roughly 30 in person, the DiTrapanis found the three-bedroom brick ranch that would become their home in a well-manicured neighborhood near the intersection of Van Dyke Avenue and 11 Mile Road in Warren.

When they moved into the 54-year-old home, they needed to clean up the yard, paint the walls, switch out some light fixtures and perform some other cosmetic tasks to make the home truly their own, said Joe DiTrapani.

“We saw a lot of homes that had serious issues, but this one was in really good shape,” she said. “We just wanted a good structure.”

Monica DiTrapani said she’s pleased with the home.

“I think we got more than we thought we’d get,” she said. “I know it’s a first house, but if we end up staying here for the rest of our lives,